The Internet has been utilized for many years to provide the backbone necessary to facilitate and host communications and services by electronic commerce (herein referred to as ecommerce) companies who specialize in creating and managing virtual marketplaces for buyers and sellers to conduct business. Many third-party ecommerce companies, such as eBay, Inc., have become market makers in that they not only provide the platform and tools necessary to conduct an online business, but they also provide the market presence to attract many customers. With the proliferation and increasing volume of online businesses on the Internet, it has also become increasingly more difficult to establish a market presence without considerable costs.
Companies, such as eBay, Inc., have successfully reached the critical mass necessary to be pervasive in the ecommerce auction industry. It is estimated that there are over 1000 companies similar to eBay, Inc. that compete by offering a variety of auction-styled ecommerce environments that address a wide range of horizontal and vertical marketplaces. Historically, sellers want to conduct business where there are many buyers and buyers want to conduct business where there are many choices. As the online auction industry has matured, the mass market approach for many sellers has been an effort with diminishing returns as the principal differentiation for buyers has become price.
Prior art solutions for online auctions in the field of the invention are directed to one of the two methods for conducting online auctions. In the first example of prior art, a method is taught by companies that provide third party auction services such as eBay, Inc. These service providers provide use of their comprehensive auction platforms and ecommerce solutions for public use by sellers and buyers to conduct business. The basic elements that are common to this method are the seller creates a seller account with the third-party service provider and then lists the products or services to be sold on the provider's platform. Listing is accomplished by the seller via uploading and/or manually inputting descriptive information and photographs about the product into the provider's auction platform database. As a result of this uploading and listing step, an association is created between the seller and the product to be auctioned. Buyers are directed to the service provider's auction platform, to the product of interest, and thus to the seller, and therefore the elements necessary to conduct an auction are provided.
In the second example of prior art solutions, a method is taught by auction software solution providers that provide software that can be purchased and operated by the seller on its own internal server and platform environments to perform auctions such as that provided by the software provider A4auction (http://www.a4auction.com). Under this method, a seller could provide auction capability for products and services offered by the entire seller company or limit auction service to divisions or individual employees who sell on behalf of the company. This method involves the seller purchasing auction software technology, constructing an auction platform environment, and operating and maintaining an auction service for the benefit of the company and for the purpose of selling the company's products and/or services. The seller's products are listed on the auction platform by uploading or inputting photographs and descriptive information about the products to be auctioned into the seller's auction platform database. In some instances, a seller's auction platform may be integrated with the seller's business management system(s) for automated uploading of product information. Buyers are then directed to the seller's marketing website where they can shop for the company's products and make bids via an auction process.
Therefore, the prior art as it relates to the field of the invention includes solutions provided by third-party service companies such as eBay, Inc. that provide auction services on a third-party platform on the behalf of sellers, and auction software companies such as A4auction.com that provide software programs to sellers that can operate an internal auction platform under the control of the seller. The embodiments disclosed are differentiated from the prior art, at least in part, in that the embodiments provide the seller controlling benefits of a private internal auction system while providing the simplicity and cost effectiveness of a public service provider solution.
There exist a number of problems and challenges for sellers not addressed by third party service companies and their methods. Sellers, who market their products via the internet, make a considerable investment to differentiate themselves from their competition, through service, reputation, selection, presentation and price, including considerable investments in their own marketing websites for showcasing their products and services to prospective buyers. Conducting business on a third party service provider site such as eBay, Inc., site presents the seller's products and services to buyers but often it does so in an inferior presentation environment as compared to the seller's own marketing website. Additionally, directing or redirecting a seller's prospect to a third party site, such as provided by eBay, Inc exposes the seller's prospects and customers to competing products, services and companies. This latter is especially disconcerting if the seller's prospect or customer became interested in a product on the seller's website but because of linkage to the third party auction site, ended up conducting business with a competing company who is also providing similar products or services on the same auction site. Auction service companies have attempted to address this significant problem through the use of virtual storefronts where the buyer is redirected away from the seller's marketing site and to the hosted service provider's platform where presentation of and information about the seller's products are duplicated on the auction platform. Storefront solutions are for sellers who have a sufficient number of products and selling frequency to support the cost, operations, integration requirements of managing an online virtual auction store and are not conducive for one-off, infrequent, or ad hoc sales. Additionally, these auction sites often do not provide the same product presentation levels as the seller's own marketing sales site and promotes sellers as undifferentiated to buyers.
Auction software which can be purchased by the seller and installed on the seller's internal web servers provides the seller more control, customization, and customer retention because the internal auction environment does not redirect the buyer to a third party website that may contain competitive products and/or suppliers. The problems associated with a seller owned and operated auction solution are the high costs, complexity, integration requirements and manpower commitment required to operate and manage an internal auction platform and therefore is not a viable solution for one off, infrequent, or ad hoc auction sales.
In addition to the above problems, sellers have made considerable and ongoing investments in marketing websites that are best suited for demonstrating, informing, showcasing and branding their specific products and services to buyers and they desire to maximize those investments. To redirect a prospect away from the seller's website to a third-party website that features competing products and services is counter to that investment strategy.
As an example of the aforementioned, it is typical for a real estate company, who is in the business of selling real estate, to provide comprehensive descriptive information on their marketing listing websites about homes for sale including comprehensive background information, high quality photographs, virtual tours, neighborhood information, tax information, market information, blogs, and the like, all for the purpose of acquiring and servicing customers. For a real estate company to take advantage of a third-party auction service such as provided by eBay, Inc., they must abandon their own website presentation of a property listing and recreate the entire listing presentation on the eBay, Inc. auction website. This includes, but is not limited to, uploading or entering property descriptions, photographs, movies, documents, etc. as part of the listing process. This effort is duplicative and often does not present the property as well to a buyer as the seller's own marketing site, which could cause the buyer to be less interested in the property. Additionally, the buyer will be exposed to competitive offerings from competitive real estate companies substantially increasing the risk that the seller may lose the buyer to a competitor. This is counterproductive to the seller and reduces the effectiveness of their own marketing websites if in the end; the buyer must shop elsewhere to actually conduct business and ends up doing business elsewhere as a result. Alternatively, the real estate company could buy auction software programs, hardware servers, and operate and manage their own internal private auction platform to avoid these serious problems but this option is costly, complex, time consuming and would require the company in most cases to reconstruct their entire marketing website, even if there was only a single property to auction for a limited time period. This is not a viable solution for a real estate company who has infrequent auction requirements or a limited budget, technical skill, or manpower. There is room for improvement in the art.